2016 Postmortem
In reply to the discussion: This is exactly the image that a Democratic Socialist is trying to convey: [View all]VanillaRhapsody
(21,115 posts)Socialist critics often criticise social democracy on the grounds that it fails to address the systemic issues inherent to capitalism, arguing that ameliorative social programs and interventionism generate issues and contradictions of their own, thus limiting the efficiency of the capitalist system. The American democratic socialist philosopher David Schweickart contrasts social democracy with democratic socialism by defining the former as an attempt to strengthen the welfare state and the latter as an alternative economic system to capitalism. According to Schweickart, the democratic socialist critique of social democracy is that capitalism can never be sufficiently "humanized", and that any attempt to suppress its economic contradictions will only cause them to emerge elsewhere. For example, attempts to reduce unemployment too much would result in inflation, and too much job security would erode labour discipline.[150] In contrast to social democracy, democratic socialists advocate a post-capitalist economic system based on either market socialism combined with workers self-management, or on some form of participatory-economic planning.[151]
Marxian socialists argue that social democratic welfare policies cannot resolve the fundamental structural issues of capitalism, such as cyclical fluctuations, exploitation and alienation. Accordingly, social democratic programs intended to ameliorate living conditions in capitalism such as unemployment benefits and taxation on profits creates further contradictions by further limiting the efficiency of the capitalist system via reducing incentives for capitalists to invest in further production.[152] The welfare state only serves to legitimize and prolong the exploitative and contradiction-laden system of capitalism to society's detriment. Critics of contemporary social democracy, such as Jonas Hinnfors, argue that when social democracy abandoned Marxism it also abandoned socialism and has become a liberal capitalist movement,[153] effectively making social democrats similar to non-socialist center-left parties like the U.S. Democratic Party.
Market socialism is also critical of social democratic welfare states. While one common goal of both concepts is to achieve greater social and economic equality, market socialism does so by changes in enterprise ownership and management, whereas social democracy attempts to do so by subsidies and taxes on privately-owned enterprises to finance welfare programs. Frank Roosevelt and David Belkin criticize social democracy for maintaining a property-owning capitalist class which has an active interest in reversing social democratic welfare policies and a disproportionate amount of power as a class to influence government policy.[154] The economists John Roemer and Pranab Bardhan point out that social democracy requires a strong labor movement to sustain its heavy redistribution through taxes, and that it is idealistic to think such redistribution can be accomplished in other countries with weaker labor movements. They note that even in Scandinavian countries social democracy has been in decline as the labor movement weakened.[155]